Patricia has $5,740 in a savings account earning 4.0% annually. She plans to use the money in the account to purchase a new car. If Patricia saves $3,280 a year at the end of the next 3 years, how much will she have in savings in 3 years to purchase a new car?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 14P
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Patricia has $5,740 in a savings account earning 4.0% annually. She plans to use the money in the account to purchase a new car. If Patricia saves $3,280 a year at the end of the next 3 years, how much will she have in savings in 3 years to purchase a new car?

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